Meta Beats Q4 Estimates, Forecasts Slower Revenue Growth in 2025
Meta (META) announced its fourth quarter earnings on Wednesday, exceeding expectations. However, the company projected a slowdown in revenue growth for the current quarter and anticipates expenses to rise in 2025.
Q4 Earnings Highlight:
* Earnings per share (EPS): $8.02
* Revenue: $48.4 billion
Both EPS and revenue surpassed analysts' estimates of $6.75 and $46.9 billion, respectively.
Revenue Outlook:
Meta forecasts revenue in the first quarter to range between $39.5 billion to $41.8 billion, indicating growth of 8%-15% year-over-year. The company declined to provide a full-year revenue forecast.
Expenses and Investments:
* 2025 expenses anticipated between $114 billion and $119 billion.
* CFO Susan Li cited infrastructure costs and employee compensation as key expense drivers.
* Meta plans to invest $60-$65 billion in AI infrastructure projects in 2025.
Other Developments:
* CEO Mark Zuckerberg announced progress in AI, glasses, and the future of social media.
* Meta reportedly settled a lawsuit with President Trump for $25 million.
Stock Performance:
Initial reaction to the earnings report led to a 4% decline in after-hours trading. However, shares recovered and were up about 1% near 5:00 p.m. ET.